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The Local Effects of the Texas Shale Boom on Schools, Students, and Teachers

Author

Listed:
  • Marchand, Joseph

    () (University of Alberta, Department of Economics)

  • Weber, Jeremy

    () (University of Pittsburgh)

Abstract

This study explores how the Texas shale boom affected schools, students, and teachers. Using variation in geology across school districts and oil prices over time, the evidence shows that test scores and attendance in the average shale district declined despite the boom tripling the tax base and creating a revenue windfall. Greater spending went to capital projects and servicing debt, not to teachers. Although higher wages may not have affected completion rates, a growing gap in wages between the private and education sectors contributed to greater teacher turnover and more inexperienced teachers, which help explain the declines in student achievement.

Suggested Citation

  • Marchand, Joseph & Weber, Jeremy, 2017. "The Local Effects of the Texas Shale Boom on Schools, Students, and Teachers," Working Papers 2017-12, University of Alberta, Department of Economics, revised 26 Jan 2018.
  • Handle: RePEc:ris:albaec:2017_012
    as

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    File URL: https://sites.ualberta.ca/~econwps/2017/wp2017-12-1.pdf
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    References listed on IDEAS

    as
    1. Joseph Marchand & Jeremy Weber, 2018. "Local Labor Markets And Natural Resources: A Synthesis Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 469-490, April.
    2. Gordon, Nora, 2004. "Do federal grants boost school spending? Evidence from Title I," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1771-1792, August.
    3. repec:spa:wpaper:2014wpecon03 is not listed on IDEAS
    4. Scafidi Benjamin & Sjoquist David L. & Stinebrickner Todd R., 2006. "Do Teachers Really Leave for Higher Paying Jobs in Alternative Occupations?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-44, December.
    5. Lucija Muehlenbachs & Elisheba Spiller & Christopher Timmins, 2015. "The Housing Market Impacts of Shale Gas Development," American Economic Review, American Economic Association, vol. 105(12), pages 3633-3659, December.
    6. Lauro Carnicelli & Fernando Antonio Slaibe Postali, 2014. "Oil windfalls and local fiscal effort: a propensity score analysis," Working Papers, Department of Economics 2014_03, University of São Paulo (FEA-USP).
    7. Buddin, Richard & Zamarro, Gema, 2009. "Teacher qualifications and student achievement in urban elementary schools," Journal of Urban Economics, Elsevier, vol. 66(2), pages 103-115, September.
    8. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    9. Brown, Jason P. & Fitzgerald, Timothy & Weber, Jeremy G., 2016. "Capturing rents from natural resource abundance: Private royalties from U.S. onshore oil & gas production," Resource and Energy Economics, Elsevier, vol. 46(C), pages 23-38.
    10. Hægeland, Torbjørn & Raaum, Oddbjørn & Salvanes, Kjell G., 2012. "Pennies from heaven? Using exogenous tax variation to identify effects of school resources on pupil achievement," Economics of Education Review, Elsevier, vol. 31(5), pages 601-614.
    11. Eric A. Hanushek & Steven G. Rivkin, 2010. "Constrained Job Matching: Does Teacher Job Search Harm Disadvantaged Urban Schools?," NBER Working Papers 15816, National Bureau of Economic Research, Inc.
    12. Marchand, Joseph, 2012. "Local labor market impacts of energy boom-bust-boom in Western Canada," Journal of Urban Economics, Elsevier, vol. 71(1), pages 165-174.
    13. Chaudhary, Latika, 2009. "Education inputs, student performance and school finance reform in Michigan," Economics of Education Review, Elsevier, vol. 28(1), pages 90-98, February.
    14. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
    15. Rickman, Dan S. & Wang, Hongbo & Winters, John V., 2017. "Is shale development drilling holes in the human capital pipeline?," Energy Economics, Elsevier, vol. 62(C), pages 283-290.
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    17. Stoddard, Christiana, 2003. "Why has the number of teachers per student risen while teacher quality has declined?: The role of changes in the labor market for women," Journal of Urban Economics, Elsevier, vol. 53(3), pages 458-481, May.
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    19. Jeremy G. Weber & J. Wesley Burnett & Irene M. Xiarchos, 2016. "Broadening Benefits from Natural Resource Extraction: Housing Values and Taxation of Natural Gas Wells as Property," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(3), pages 587-614, June.
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    21. Brown, Jason & Fitzgerald, Timothy & Weber, Jeremy G., 2016. "Asset Ownership, Windfalls, and Income: Evidence from Oil and Gas Royalties," Research Working Paper RWP 16-12, Federal Reserve Bank of Kansas City.
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    Cited by:

    1. Stephan E. Maurer, 2018. "Oil Discoveries and Education Spending in the Postbellum South," CEP Discussion Papers dp1526, Centre for Economic Performance, LSE.

    More about this item

    Keywords

    local labor markets; local public finances; resource booms; schools; students; teachers;

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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    1. Labor Economics (ECON 431)

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